Alcazar Energy Partners closes $490 million fund

Luxembourg-based Alcazar Energy Partners II SLP (SCSp) has closed its $490 million sustainable infrastructure fund. Since its first close in November 2022, the fund has attracted eight additional lead investors, including the U.S. International Development Finance Corporation (DFC). With a strong pipeline of private and public investors, 80% of which are rated AA or AAA, AEP-II aims to deliver over 1.6 GW of clean energy projects in emerging markets, reducing greenhouse gas emissions by over 3 million tonnes annually and creating long-term employment opportunities.

Fund objectives and impact

AEP-II focuses on the development of large-scale renewable energy projects in regions historically underserved by the traditional investment community. Projects such as two wind farms in the Western Balkans with a total capacity of 456 MW aim to improve the energy mix and achieve energy transition goals, while generating local jobs.

Strong, diverse support

Fundraising for AEP-II was supported by high-profile public and private investors from North America, Europe, the Middle East and Asia. Daniel Calderon, co-founder and managing partner, said this success, despite challenging market conditions, is a recognition of the strength of Alcazar Energy’s offering and its ability to lead the development of clean energy projects in emerging markets.

Alcazar Energy’s vision

Alcazar Energy, with a team of advisors based in Dubai, is committed to investing in large-scale renewable energy projects in emerging markets. Following the success of its first investment vehicle, Alcazar Energy Partners I (AEP-I), the company launched AEP-II, attracting leading investors from around the world. AEP-II plans to mobilize approximately $2 billion in foreign direct investment, including project financing). This played a key role in the successful fundraising for AEP-II, reflecting investor confidence in the company’s ability to generate sustainable returns while making positive contributions to local communities and the global environment.

Prospects for renewable energy in emerging markets

Alcazar Energy’s AEP-II Fund is well positioned to continue investing in key renewable energy projects, supporting the energy transition in emerging markets. These investments will play a key role in reducing greenhouse gas emissions and creating new economic opportunities in underserved regions. The final closing of Alcazar Energy’s AEP-II Fund marks a significant milestone in the financing of renewable energy projects in emerging markets.